Credit Accessibility Granted by Rural Banks in Rural Community: Evidence from Ghana

The main objective of the rural banks was to improve the standard of the living in the rural community they operate. This is done by encouraging the rural indigenes to save with them, and assist them by granting credit facilities to them. It is obvious that in spite of the existence of the bank in the community, people still take loans from friends and relatives (moneylenders), when in comparably have higher interest rate than that of the bank. Some take 100% interest within the shortest time with properties used as collateral until the money are paid back before the properties are released to them. The researcher found out that the public lack information about the rural bank in their community, which leads to their access of credit from friends and relatives known as Money Lenders instead of the bank. The concern in this study is, therefore, the lack of information between banks and the public. Even though the display of information by banks is supposed to provide vital information to customers, a number of concerns are raised. They are directed at how the rural banks can bring about effective banking services to the rural community. Given the low level of literacy, how many customers can read the information displayed in the banks if they are available? How many can understand what they read if they are able to read? In addition, to what extent does this information assist customers in their demand for credits? With what strategies do the banks reach out to the public? If not all, most of these concerns have informed the focus of discussion in this paper.